Dozens of local development companies, such as Leader and Area Partnerships, have been told to merge by the end of the year, or else face the threat of a loss of State funding by Minister Éamon Ó Cuív.
Under the changes, the numbers of trade union representatives and local business people will be sharply cut, while TDs will be barred from sitting on the boards of any of the companies.
Nearly 60 of the existing 160 Leader, area-based partnerships and community partnerships will have to merge under the guidelines issued last week by the Minister for Community, Rural and Gaeltacht Affairs, Mr Ó Cuív.
The mergers, which will affect hundreds of staff, are expected to create dozens of industrial relations conflicts where similarly-ranked staff from different agencies compete for primacy in new bodies.
One of the groups affected, the Cavan Monaghan Leader group, which has been told to merge with the local partnership company, has already lodged an objection with the European Commission, which funds much of its work.
Explaining his plans, Mr Ó Cuív said he wanted to ensure that every part of the country was covered by social development companies, which are increasingly used by the State to deliver much-needed community services.
Currently, he said, Leader and partnership companies overlap in some counties, and duplicate each other's efforts, while other parts of the country have neither type of social development company operating.
The Minister said the community groups will have to tender for their share of €200 million worth of State funding shortly.
"I will advertise the tenders within weeks. The companies that succeed in getting the tenders will be the ones who fulfil the requirements. I don't think that that is unreasonable on the part of the State that is providing the money for these bodies."
The thrust of many of Mr Ó Cuív's proposals is accepted by many in the local groups, though they disagree that they were properly consulted: "Information is not consultation," complained one board member privately.
Accepting the merit of Mr Ó Cuív's ambitions, Sexton Cahill, chairman of the Limerick Paul Partnership - which is unaffected by the merger changes - warned that many companies could face serious trouble.
"I expect that some of these changes will end up eventually before the Labour Court. What he is trying to do I totally agree with, but it could have been handled better," Mr Cahill said.
The decision to restrict the numbers of trades unionists, employers and other social partners is also questioned: "It is hard enough to get people to stand. People are not queuing up to join these bodies," said one Dublin member.
Under Mr Ó Cuív's plans, and once they are fully operational, one-third of board directors would stand down after every year, and each director should serve for only two terms, and then only for one more after a break.
Opponents of the plan have claimed - though they would speak only with anonymity - that the Minister is acting by diktat, and has not listened properly to the arguments against change that have been put forward over several years of talks.
Defending the decision to cut the numbers of social partner representatives, Mr Ó Cuív said the new boards would themselves be smaller, and would continue to have a mixed membership.
The exclusion of TDs is justified since very few have ever been members - which is broadly true, though Fianna Fáil's Seán Haughey was a member of the Northside Partnership, and Labour TD Tommy Broughan is still on the board.
"Democratic legitimacy", said Mr Ó Cuív, will be provided by the presence of local councillors, which is "more appropriate given the local development focus of the various companies".
